Regional Markets

Regional Markets for Local Development
bananas, pineapples, mango etc.), but also non-traditional commodities feature prominently
in their work (including shea butter, rooibos tea, vegetables, fresh and dry fruits
etc.). FTA operates three regional networks: the Eastern Africa Network, based in
Nairobi, Kenya; the Western Africa Network, based in Accra, Ghana; and the Southern
Africa Network, based in Cape Town, South Africa. A new network in North Africa is
soon to be established by Fairtradecertified producers.
Historically, Fairtrade has relied on export markets driven by a strong demand from
North America and Europe. However, with the establishment of a producer network
in Africa, FTA is leading a shift towards the promotion of local and regional markets,
particularly through the establishment of labelling initiatives in South Africa and in
Kenya. The organisation seeks to seize the growth momentum with the emergence of
powerful economies in the fast-expanding developing countries—especially in countries
like Brazil, India and South Africa, which already have many certified Fairtrade
producers. Not only are new products being introduced, specifically tailored for these
markets, but also Fairtradeis aiming to raise consumer consciousness in producing
countries and increase local demand.
The experience in Latin America, and Brazil in particular, has demonstrated that there
is strong potential for creating a grassroots ’Fair Trade’ movement through the promotion
of local products as well as the introduction of the concept at the policy level.
Opportunities are also emerging in Africa. On the one hand, Africa is fertile ground
for the introduction of staple foods into the Fairtrade market bydrafting the relevant
standards and promoting consumer demand in the local or regional markets. On the
other hand, new developments in the modernisation of the retail sector, such as the
aggressive expansion of big supermarket chains, allow farmers new opportunities for
influencing supply-chain policies at large through producer networks.
Impact of the intervention
Overall, the Fairtrade model, as it has been implemented so far, offers useful lessons for
effectively promoting smallholder production and marketing.
Pro-poor development
By guaranteeing a minimum price for certified commodities, participation in the
Fairtradevalue chain has a positive impact on the stability of producer incomes. In a
volatile market, Fairtrade provides the type of safetynet that can protect producers
in times of crisis. During harsh economic times, ‘Fairtrade diminishes risks of high
de-capitalization and of farms being neglected or abandoned’ (Laroche and Guittard
2009). The minimum price guarantee provides additional income (with the similar
effects of a subsidy), which producers can use to cover daily costs and bridge economic
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